I think it's incredible how nearly every person in this thread focused solely on surgery. The body does not solely determine identity. The body is simply an avatar for the mind (and how you dress and your innate personality and mannerisms contribute to this avatar). Most transpeople don't actually get SRS (sex reassignment surgery).
Has no one considered that what transsexuals are looking for is simply to have their identity respected? Is that so difficult? Seriously, don't even think about what they have between their legs, because it shouldn't matter. Who thinks about other people's genitals that much? I don't.